(2) what steps he plans to take to improve the governance arrangements of pension fund scheme trusts.
The Government recognise the importance of pension scheme governance and the vital role of pension scheme trustees. While they have no current plans to introduce further legislation in this area, nor to assess the expertise or training requirements of trustees directly, the strategic priorities of the pensions regulator include improving the governance of work-based pension schemes and the training of trustees.
The regulator has already provided trustees and their advisers with extensive guidance on a range of governance issues such as internal controls and risk management through codes of practice and other guidance. The regulator has also established a free e-learning programme for trustees, the ‘Trustee toolkit’, providing easily accessible information which has been well received.
The regulator will build upon this work by implementing the initiatives outlined in its discussion paper on scheme governance published in April 2007. These relate to managing conflicts, the employer covenant, relations with advisers, issues around administration, investment choices and winding-up of schemes.